According to wave count this currency pair is developing wave 5 of the med term uptrend. Within the latter we have a sequence of ABC hourly subwaves (colored red on the chart) with wave C being the impulse. The targets of the upside movement are the old Fibonacci expansions off 0.8772-0.9032-0.8862 (waves 1-2 - colored magenta), 0.8862-0.9183-0.9091 (waves 3-4), and the new ones off 0.9091-0.9270-0.9207 (colored red), and 0.9207-0.9269-0.9237 (yellow).
Resistances:
- 0.9318 = contracted objective point (COP), reached already (!)
- 0.9337 = expanded objective point (XOP)
- 0.9386 = objective point (OP)
- 0.9399 = super expanded objective point (SXOP)
- 0.9412 = OP
In case the price reverses down for a correction the nearest supports will be Fibonacci retracements of the waves up starting from 0.9207 and from 0.9091 (waves not formed yet).
Overbought/Oversold
The Detrended Oscillator is moving to the zero level from the overbought. The nearest oversold level (support) is 10-20 pips below the current price. Assuming that the prevailing trend is up it's recommended to look for bottoming signals against one of the Fibonacci resistances or in the oversold area to enter long on any weakness.
